Matrix Updates Managed Assets Acquisition Opportunity

TORONTO, ONTARIO--(Marketwire - July 27, 2011) - As reported in Matrix Asset Management Inc.'s ("Matrix" or the "Company") (TSX:MTA) Management's Discussion and Analysis for the three months ended March 31, 2011, the Company's venture capital and private equity subsidiary, GrowthWorks, has been pursuing taking on management of assets currently managed by five VenGrowth retail venture capital funds ("VenGrowth Funds"). GrowthWorks Canadian Fund Ltd. (the "Fund"), a GrowthWorks managed fund, today announced a new proposal for merging the VenGrowth Funds into GrowthWorks Canadian Fund (the "GrowthWorks Proposal"), which it believes offers a number of significant advantages over the most recent merger proposal being promoted by the board of directors and managers of the VenGrowth Funds with Covington Fund II Inc. The proposed mergers, if all are completed, are expected to add approximately $300 million in net assets to GrowthWorks Canadian Fund.

To help facilitate a key term of the GrowthWorks Proposal, GrowthWorks WV Management Ltd. (the "Manager") which manages the Fund, has agreed to indemnify the Fund in respect of any costs or liabilities associated with any claims by the current VenGrowth Fund managers (the "VG Managers") for termination fees determined to be payable as a result of the mergers, either through a direct payment or in limited circumstances by way of an abatement of fees payable by the Fund to the Manager. The indemnity is effective only on closing of the GrowthWorks Proposal. If the mergers close, the Manager will receive significantly enhanced cash flow from incremental fees. That incremental cash flow is expected to be well in excess of the indemnity obligation, which is estimated to be not more than approximately $21 million. David Levi, CEO of Matrix, commented, "We look forward to delivering better value to both VenGrowth Funds shareholders and Matrix shareholders if the GrowthWorks Proposal is approved by VenGrowth Fund shareholders and completed."

About Matrix (www.matrixasset.ca)

Matrix (TSX:MTA) is a diversified asset and wealth management company with offices across Canada. The Company's mission is to provide a diverse array of investment choices and the best possible investment management service to Canadian investors and institutions. The Company delivers its services through three main operating subsidiaries serving institutional, high net worth, and retail investors.

Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking statements" under Canadian securities legislation. These statements are based on current beliefs and assumptions of management, however are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from the forward-looking statements in this news release, including but not limited to statements about the completion of the GrowthWorks Proposal, expected management fee revenues earned by the GrowthWorks Manager following completion of the GrowthWorks Proposal and estimated liabilities and indemnities. For additional information with respect to certain of these beliefs, assumptions, risks and uncertainties, please refer the Matrix's Management's Discussion & Analysis for the interim period ended March 31, 2011 and annual information form for the year ended December 31, 2010 available on SEDAR at www.sedar.com.

Readers are cautioned not to place undue reliance on these forward-looking statements. Matrix does not undertake any obligation to revise or update any of these statements as a result of new information, future events or otherwise after the date hereof, except as required by securities laws.